Learn what break-even analysis is, how it works, and how to calculate the break-even point using formulas to assess costs, revenue, and profitability.

To predict what your costs will be if you change your production volume, you have to find your variable costs. You can then find the variable cost per unit and estimate what your costs will be for a ...

Learn the key financial metrics that signal a business shutdown point for single-product and multiproduct firms, based on managerial economics.

A manufacturer has two general ways to account for fixed manufacturing costs: variable costing and absorption costing. Under variable costing, you do not include fixed manufacturing costs in your ...

There are many inputs related to the production of goods and services, not to mention the associated production costs. These expenses can be divided into different categories. Direct costs and ...

The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

Budgeting, quite simply, is the act of spending your money efficiently. The importance of budgeting cannot be overemphasized, and whether you’re looking at your individual finances or running a ...